- AUD/USD remains pressured around intraday low, fades the previous day’s rebound from yearly low.
- RSI retreat, bearish MACD signals keep sellers hopeful of breaking immediate support line.
- Bulls need validation from late June swing high, bears can aim the yearly low.
AUD/USD holds onto the day-start bearish bias as sellers attack the two-day-old support line heading into Tuesday’s European session. That said, the Aussie pair remains depressed at around 0.6860 by the press time.
The quote’s weakness could be linked to its failure to cross the 200-HMA, as well as the bearish MACD signals. Additionally, lower high formations since the last week and a downward sloping RSI (14) from the overbought area also keep sellers hopeful.
That said, the AUD/USD pair’s latest weakness needs validation from the aforementioned support line, at 0.6855 by the press time, to direct the pair towards the yearly low marked in the last week around 0.6765.
Should the quote remains bearish past 0.6765, a downward sloping support line from late January, near 0.6755, will act as an extra filter to the south before giving control to the AUD/USD bears.
On the contrary, a successful break of the 200-HMA, around 0.6890, won’t be enough to recall the AUD/USD buyers as the 61.8% Fibonacci retracement of June 16 to July 01 declines, near 0.6950, acts as the key hurdle to forecast further upside.
In a case where the AUD/USD prices remain firmer past 0.6950, the odds of witnessing a run-up towards the 0.7000 psychological magnet can’t be ruled out.
AUD/USD: Hourly chart
Trend: Bearish